Victorian politics continues to be vulnerable to "dark money" and foreign donations, as MPs struggle to reach agreement on urgent reforms.

“Unlimited dark money” will continue to flow into Victorian politics after Labor failed to reach an agreement with the Liberals or the Greens regarding donation reforms that the Allan government pledged to expedite through parliament. Victoria currently has no limits on political donations or disclosure requirements, just months before the November election, after the High Court overturned the state's donation laws last month. Under the previous laws, individuals and organizations could donate a maximum of $4,970 to a candidate, although there was an exemption for funds transferred to registered political parties through their "nominated entities." While the High Court challenge focused on this exemption, it ultimately found that the entire section of the electoral act governing political donations was unconstitutional. The ruling has left the Victorian Electoral Commission unable to distribute the latest round of public funding and has opened the door to large donations, including those from foreign sources. On the day of the ruling, Premier Jacinta Allan stated that the government would "immediately move to restore Victoria's electoral integrity regime," warning that the state had been "exposed to dark money in politics." She said the reforms would also be expedited through parliament and applied retroactively to the date of the decision. Since then, Labor, the Liberals, and the Greens have been in negotiations and generally agree on the need to reinstate a cap on donations, disclosure requirements, and public funding arrangements. However, they remain divided on key details, including where the donation cap should be set, how to treat the nominated entities, and whether the laws should be retroactive. This means the bill will not be introduced to parliament before June. The Greens leader, Ellen Sandell, said her party wants to "reinstate strict caps or bans on political donations and close any loopholes that allow Labor and the Liberals to manipulate the rules for their own benefit." "Right now, because of Labor's mishandling, we have a situation where unlimited dark money from overseas, billionaires, and corporations can flow to political parties to influence our state election," Sandell said. "We need to get big money out of politics and level the playing field." Liberal sources said they would reject retroactive laws and wanted to see the donation cap increased. The opposition leader, Jess Wilson, said on Saturday that "good faith" discussions were ongoing with the government, and it was up to Labor to "bring forward" legislation. However, as a sign that the government was becoming less confident of securing the Liberals' support, the premier's office also began consulting with crossbench MPs last week. This included Libertarian MP David Limbrick, who said he was "disappointed" by the delay, warning that Victoria was "in danger" without safeguards against foreign donations. "There are currently no state laws prohibiting foreign donations, which leaves our state vulnerable to foreign interference. This is a national security risk, and the government must act urgently to fix it," Limbrick said. "I am disappointed that there hasn't already been a bill presented to at least close this loophole and clarify administrative funding and donation disclosure arrangements, which are also in limbo." Animal Justice Party MP Georgie Purcell supported the reforms but argued that the previous cap was "very limiting for minor parties" and "gave an advantage to major parties with historically wealthy entities and corporate donors." "We don't want to open the floodgates, but most minor parties would like to see a modest increase that would allow us to properly fund and fight elections," Purcell said. The Australia Institute published an open letter in the Age on Monday, arguing that the new laws must be retroactive and fair. The letter, supported by civil society organizations, also calls for an independent review and broader public consultation, warning that the reforms should not be "exclusively designed by those with a vested interest in the outcome." The Centre for Public Integrity, meanwhile, has called for the urgent restoration of disclosure and public funding rules before a broader overhaul of the laws after the election.